Everyone often says that one should leverage technology to enhance their business in all spheres, but hardly anyone talks about the various available options or the costs of these options. But don't you worry, we got you. We put this blog up to help you better understand two options, i.e., cloud and on-premises software and the underlying costs of both these options.
Meaning: Cloud
Cloud Computing is a business model where computing resources are provided as services over the internet. Cloud technology provides users access to shared resources and applications hosted on remote servers accessed via a web browser or other thin clients. Cloud allows you to use only what your company needs when it needs it, significantly reducing costs by eliminating upfront equipment purchases/lease expenses that can quickly escalate into six figures for larger enterprises.
Cloud provides many advantages over on-premise software, including cost savings, high availability, scalability, fewer maintenance requirements and easy access from anywhere you have internet connectivity--and all at a lower total cost of ownership (TCO).
Meaning: On-premises software
On-premise solutions differ from cloud computing in many fundamental ways. A software solution is a tool that can help your business run more efficiently. On-premise software refers to the installation of a program on a computer or server, as opposed to being hosted in the cloud by another company. When an organization decides to go with the on-premise option, they are adopting an entire solution stack. Cloud solutions generally include only the application/software layer, with most of the underlying infrastructure being managed by a cloud provider. But with an on-premise option, you are responsible for all of the components.
Data security is important, and if a company works in an industry with particular regulations- it may not be allowed to keep data on the cloud. And such companies then need to have on-premise data storage, and this also gives you better control over your data.
Comparing the costs of both the options Cloud vs. On-premise
Cloud is cheaper as compared to the on-premise option. Cloud solution providers generally charge a monthly fee depending on the plan you choose and the size of the data you are storing on their cloud.
Whereas having an on-premise solution requires more investment. You need to buy the hardware, software licenses and also have to maintain them. You also need to hire professionals to keep them up and running or help in case something breaks down.
Other key differences between the two
1) Deployment
On-premise - You need to be technically sound and have in-depth knowledge as the whole infrastructure is based in-house, and the internal IT team is responsible for the setup, maintenance, upgrades, etc., basically everything.
Cloud - Cloud providers take care of the deployment. They help you set up a cloud infrastructure, application platforms and Cloud storage alongside other services that their Cloud platform offers. You do not have to be a technical expert or have prior experience to deploy your cloud solution with them.
2) Control
On-premise - With on-premise infrastructure, you are in control of everything. From storage to access, this allows for greater control over what happens to their data. This is one reason why firms belonging to highly regulated industries often choose this option.
Cloud - With Cloud computing, you are stuck with what the Cloud provider provides. You have no control over it and therefore is not customizable to your business needs or requirements. But they do offer self-service provisioning of resources, including storage where you can scale up/down as per your infrastructure requirement without any downtime.
3) Security
On-premise - Since on-premises setup has only one owner, i.e., the IT team who owns everything from hardware to software configuration so they can easily monitor each aspect related to security. This ensures a high level of security upon the control that they have over the data. This is the more sensible option for those who deal with sensitive information or are in a high-risk or highly regulated industry.
Cloud - Cloud computing provides multiple layers of security. Cloud providers have invested heavily in hardware and software to provide a highly secure environment where they handle identity management, networking, data storage, among other aspects related to the cloud infrastructure.
The flexibility offered by Cloud Computing allows you to choose services that are best suited for your business needs which also includes compliance with industry standards if required.
4) Compliance
On-premise - All the industries are regulated in some or another form, but when it comes to storing the data, some industries have to follow more stringent protocols than the others, like the medical industry has to follow the HIPPA act. In such cases, the on-premise solution might provide better compliance, or more like they are mandated to choose the on-premise option for better compliance.
Cloud - Choosing a cloud service needs to be done only after a thorough background check of the provider has been done. This will include checking for compliance and security standards as well. Cloud computing is a new service, and it might seem like an easy option, but one needs to be sure of the provider before they make this decision because once data has been uploaded on the cloud, there isn't much that can be done if anything goes wrong with the system or server.
Hybrid Solutions
Cloud computing and on-premise software both have their pros and cons and it can be really challenging to choose just one. Here comes the option of a hybrid solution. This offers the best of both worlds. It is a mix of Cloud and On-premise services.
A hybrid solution works by having cloud-hosted data while keeping other applications on-premise servers. Cloud computing offers scalability, whereas on-premise software needs some management support at times. If everything goes well, it can be cheaper than Cloud Computing because you still have your own server in place but pay only for what you use when using Cloud services or products that come under a monthly subscription model where there are no upfront costs involved, unlike traditional licensing models that charge huge amount as license fee often leading to overspending.
If you need assistance regarding IT solutions, contact the team of ITsGuru IT Solutions Company Houston, and they will help you find what works best for you.
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